Fostering a Future of Green Energy
Total Page：16
File Type：pdf, Size：1020Kb
Fostering a Future of Green Energy MAHANAGAR GAS LIMITED Annual Report 2018-19 Entering the 25th year of fuelling lives MAHANAGAR GAS LIMITED Follow us at / mahanagargas / mglltd Scan above QR code to Website: visit the website www.mahanagargas.com DISCLAIMER We have exercised utmost care in the preparation of this report. It contains forecasts and/or information relating to forecasts. Forecasts are based on facts, expectations, and/or past figures. As with all forward looking statements, forecasts are connected with known and unknown uncertainties, which may mean the actual result may deviate significantly from the forecast. Forecasts prepared by the third parties, or data or evaluations used by third parties and mentioned in this communication, may be inappropriate, incomplete, or falsified. We cannot assess whether information in this report has been taken from third parties, or these provide the basis of our own evaluations, such use is made known in this report. As a result of the above mentioned circumstances, we can provide no warranty regarding the correctness, completeness, and upto-date nature of information taken, and declared as being taken, from third parties, as well as for forward looking statements, irrespective of whether these were derived from third parties or ourselves. Readers should keep this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Corporate Overview Statutory Reports Financials Fostering a Future of Green Energy As we enter the 25th year, we are reinforcing our position as one of India’s leading city gas distribution entity. With size, scale and experience that spans a quarter of a century, we are known for our customer connect, while fostering productivity, employee safety, environment protection, social emancipation and serving the interest of all our stakeholders. Living in an era of new-age energy, natural gas has gained importance as the most preferred environmentally friendly fuel, compared to the efficiency and eco-sustainability of conventional fuels. With the growing demand for natural gas, the need for alternative fuel options is evident in Mumbai and its adjacent regions, our key operating market. With focus on expanding our infrastructure well-primed with operational efficiency, Mahanagar Gas Limited (MGL) is bringing the benefits of natural gas to large sections of the population in our licensed areas. As we continue to focus on the new opportunities, we remain committed to all our stakeholders. We remain committed to our environment and ecology. We remain committed to our society and community. We remain committed to Fostering a Future of Green Energy. CONTENTS CORPORATE OVERVIEW STATUTORY REPORTS 1 Fostering a future of Green Energy 24 Management Discussion and Analysis 2 At a Glance 38 Director’s Report 4 Our Financial Highlights 74 Business Responsibility Report 5 Our Performance Highlights 86 Corporate Governance Report 6 Our journey of Growth and Excellence 8 Message from the Chairman FINANCIAL STATEMENTS 10 Message from the Managing Director 118 Independent Auditor’s Report 12 Empowering our people for 128 Balance Sheet responsible growth 129 Statement of Profit and Loss 14 Growing In India’s most lucrative territories 130 Statement of Cash Flows 16 An uncompromising culture for 132 Statement of Changes in Equity maintaining the highest safety standards 133 Notes to the Financial Statements 20 Board of Directors 22 Corporate Information 1 At a Glance OUR VISION Mahanagar Gas Limited (MGL) is one of the largest City Gas Distribution To be a World Class, (CGD) companies in India. With over 24 years of experience in supplying Consumer & Environment natural gas in Mumbai and adjoining Friendly, Employer of Choice; areas, MGL is the sole authorised committed to provide Safe, distributor of Compressed Natural Efficient and Reliable energy; Gas (CNG) and Piped Natural Gas while creating Value for (PNG) in Mumbai, Thane Urban and all our Stakeholders. adjoining municipalities and the Raigad district in the state of Maharashtra, India. The Company distributes CNG for use in motor vehicles and PNG for domestic household as well as for commercial and industrial use. 2 Annual Report 2018-19 Corporate Overview Statutory Reports Financials MGL distributes natural gas through an extensive CGD The company believes in providing safe and uninterrupted network of pipelines. It has the exclusive authorisation to supply of gas to the customers and the CNG is supplied lay, build, expand and operate in accordance with the through its wide distribution network. Petroleum and Natural Gas Regulatory Board Regulations 2008 in Mumbai until 2020, in Thane Urban and adjoining As of March 31, 2019, it had a supply network of over Municipalities until 2030 and the Raigad district until 2040. 436.65 kms of steel pipelines, over 4,873.223 kms of polyethylene pipeline and over 236 CNG filling stations having more than 1,382 dispensing points. 5,310 km 2.95 MMSCMD Pipeline Network Volume of Natural Gas Supplied in FY 2019 0.69 million 70 CNG Customer Base Industrial Consumers 1.14 million 236 Domestic Households CNG Filling Stations with Pipe Gas Connection 3,754 +1,382 Commercial Customers Dispensing Points 3 Our Financial Highlights During FY 2018-19, we witnessed strong growth in our revenue, profits and profitability margins, mainly driven by increase in customer base and coverage area. EBITDA (` in Crore) REVENUE (` in Crore) CAGR 885.45 CAGR 3,056.79 2.3% 16.79% 780.11 2,452.92 2,239.07 644.15 2,285.13 508.93 2,291.40 489.69 FY FY FY FY FY FY FY FY FY FY 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 ROA AND ROE (%) ROA% ROE% PAT (` in Crore) 546.39 477.87 393.43 24.29% 24.32% 22.05% 18.66% 310.89 19.52% 16.96% 16.94% 301 15.75% 14.54% 13.70% FY FY FY FY FY FY FY FY FY FY 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 4 Annual Report 2018-19 Corporate Overview Statutory Reports Financials Our Performance Highlights z Added 9.25 km of steel and 258.43 km of PE Pipeline z During the year, 0.0825 mn vehicles were added for network, leading to 5,310 km of gas pipeline spread CNG supply and 0.111 mn domestic households were across Mumbai and its adjoining areas, and Raigad. connected for PNG. In addition, 217 commercial and z Added 1,11,511 customers using PNG and 82,549 3 industrial customers were added. customers using CNG. z Added 18 CNG Filling Stations for small and medium vehicles. CNG filling facility at 17 depots is operational for over 3,342 public transport buses run by BEST, MSRTC, TMT and NMMT to provide pollution-free travel to the citizens. CNG CUSTOMERS (Millions) CNG VOLUME (MMSCMD) 2.17 0.82 1.98 1.9 0.61 0.54 1.8 1.77 0.47 0.42 FY FY FY FY FY FY FY FY FY FY 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 PNG CUSTOMERS (Millions) PNG VOLUME (MMSCMD) 1.11 1.03 0.78 0.72 0.95 0.67 0.86 0.63 0.8 0.62 FY FY FY FY FY FY FY FY FY FY 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 5 Our Journey of Growth and Excellence Natural gas supply and 3rd CGS at transportation Taloja and th contract with 2nd CGS at 4 CGS at GAIL Mahape Ambernath FY 1998 FY 2009 FY 2011 FY 2012 FY 2013 FY 2014 Pipeline 150th CNG Pipeline PE - 2,500 km and dispensing PE – 3,800 km and Steel - 250 km station Steel - 380 km 6 Annual Report 2018-19 Corporate Overview Statutory Reports Financials Expanded our network 200th CNG in Raigad 110% dispensing by operating allocation of station, Listing on 10 CNG stations domestic gas NSE and BSE FY2015 FY 2016 FY 2017 FY 2018 FY 2019 New GA Started Raigad Commercial operations in Raigad 7 Message from the Chairman Dear Shareowners, increase opportunities for investments, and promote trade integration. As we enter the 25th year, I am pleased to present your Company’s Despite the slowdown in growth, India yearly performance review for the year stood out as one of the world’s fastest 2018-19. growing large economies, majorly led by a robust consumption story. However, FY 2018-19 was a strong year, as the GDP growth moderated primarily we maintained our position as one due to subdued rural demand towards of the leading natural gas distribution the second half of the year coupled companies of India. The trust that with liquidity issues. While customer customers and stakeholders have shown sentiments were moderated, the long in our abilities, has continued to enthuse term consumption story remains intact. us to achieve consistent results and 9.26% significant milestones during the year. OPERATIONAL REVIEW Overall Growth in Reflecting on the fiscal period under Any progressive organisation is largely Sales Volume review, FY 2018-19 was filled with known by the measure of 3 parameters external vulnerabilities arising out of Performance, Health and Perception volatile oil prices, trade wars between (PHP). major global trading partners and US monetary tightening. The global Performance is non-negotiable for 18 economic indicators remain largely growth and success of the organisation and it is the measure of its Physical & New CNG Stations favourable though growth is moderating. This offers a great opportunity for Financial performance. added during FY 2019 economies to boost human capital, 8 Annual Report 2018-19 Corporate Overview Statutory Reports Financials We are pursuing all our initiatives towards saturating the market with piped gas and reach every customer requiring gas in our licensed areas.